Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits:

Pension Benefits (CenterPoint Energy)

		Three Months Ended March 31,
		2020			2019
	(in millions)
Service cost (1)		$	10		$	10
Interest cost (2)		19			23
Expected return on plan assets (2)		(28		)	(25		)
Amortization of prior service cost (2)		—			2
Amortization of net loss (2)		10			13
Curtailment gain (2) (3)		—			(1		)
Net periodic cost		$	11		$	22

(1) Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals.

(2) Amounts presented in the table above are included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals.

(3) A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In February 2019, CenterPoint Energy recognized a pension curtailment gain of $1 million related to Vectren employees whose employment was terminated after the Merger closed.

Postretirement Benefits

	Three Months Ended March 31,
	2020								2019
	CenterPoint Energy			Houston Electric			CERC		CenterPoint Energy			Houston Electric			CERC
	(in millions)
Service cost (1)	$	—		$	—		$	—	$	1		$	—		$	—
Interest cost (2)	3			1			1		4			2			1
Expected return on plan assets (2)	(1		)	(1		)	—		(2		)	(1		)	—
Amortization of prior service cost (credit) (2)	(1		)	(1		)	—		(1		)	(1		)	—
Net periodic cost (income)	$	1		$	(1	)	$	1	$	2		$	—		$	1

(1) Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals.

(2) Amounts presented in the tables above are included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals.

The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2020:

	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Expected minimum contribution to pension plans during 2020	$	83	$	—	$	—
Expected contribution to postretirement benefit plans in 2020	17		10		4

The table below reflects the contributions made to the pension and postretirement benefit plans during 2020:

		Three Months Ended March 31, 2020
		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Pension plans		$	2	$	—	$	—
Postretirement benefit plans		4		2		1

COVID-19 Impacts.  The Registrants remeasure the funded status of each plan as of December 31 each year, and at an interim period when a curtailment, settlement, or material plan amendment occurs.  On the measurement date, actuarial gains or losses are recognized in accumulated other comprehensive income, or when cost is recovered through regulated rates, as a regulatory asset or liability. During the three months ended March 31, 2020, the pension plan assets declined by approximately $171 million or 10% from December 31, 2019. The fair value of pension plan assets on the plan remeasurement date impacts the funded status, net period cost, and the required cash contributions; however, changes to pension plan assets do not impact the Condensed Statements of Consolidated Income or Condensed Consolidated Balance Sheets in interim periods when a plan remeasurement is not required. An interim remeasurement of the plans was not required, and therefore did not occur, during the three months ended March 31, 2020.